Norwegian rejects IAG takeover bid

Low-cost airline Norwegian Air Shuttle confirmed Friday it has turned down two separate takeover bids by British Airways owner International Airlines Group (IAG).

The announcement follows IAG taking a 4.6 per cent stake in the Scandinavian carrier in April.

“The board of Norwegian Air Shuttle (NAS) confirms that it has received two separate conditional proposals from IAG Group in relation to an acquisition of 100 percent of the share capital of NAS,” the airline said in a statement.

“These proposals were reviewed in conjunction with NAS’ financial and legal advisers, and were unanimously rejected on the basis that they undervalued NAS and its prospects.”

In a presentation to investors on Friday, IAG said it “has had contact with the Norwegian board regarding a possible offer, without reaching an agreement.”

The British company, which also owns Spanish airlines Iberia and Vueling, is now “considering its options”, it said Friday after reporting a first quarter net profit of 794 million euros, up from 57 million euros the previous year.